Regulatory Alerts2022-01-01
Circular No. 205 Criminal Modus Operandi
The Palestine Monetary Authority issued Circular No. 205 to alert banks to a criminal modus operandi involving impersonation of financial staff via social media to steal customer credentials and execute fraudulent transfers. The directive mandates banks to educate customers, establish fraud reporting channels, suspend compromised electronic services, and enforce strict mobile recharge limits of 100 NIS daily, 200 NIS weekly, and 300 NIS monthly. Additionally, banks must implement automated system controls to prevent unauthorized mobile number changes, monitor cross-branch transactions between the West Bank and Gaza, send SMS alerts for all account activities, and report compliance measures in writing to the AML-CFT department.
[Logo of the Palestine Monetary Authority]
PALESTINE MONETARY AUTHORITY
Circular No. (205 / 2022) To all banks operating in Palestine Date: Monday, September 12, 2022
Subject: Criminal Modus Operandi
The Palestine Monetary Authority urges banks to take precautionary measures to avoid a criminal modus operandi aimed at defrauding citizens and stealing their funds. This modus operandi involves individuals impersonating employees of financial institutions, private companies, or international organizations, and then proceeding to:
- Contact customers via social media platforms (Facebook, Instagram, and WhatsApp) under the pretext of providing financial assistance, monetary prizes, or monthly salaries for a specified period, in exchange for obtaining the customer's personal information, bank card details and image, PIN, and OTP verification code.
- Use the obtained data and information to create online and mobile banking accounts in the customers' names or modify their online and mobile banking account details, and then execute electronic transfers to pay bills, make purchases, recharge mobile phone balances, or conduct electronic financial transfers to third parties.
- Contact the recipients of financial transfers under the pretext that they were executed in their favor by mistake, and then request them to reverse the amount by transferring it to a specific account or recharging a specific mobile phone.
In order to protect customers from falling victim to fraud and deception crimes and to safeguard their funds, the Authority emphasizes the necessity of adopting the following measures:
- Educate and raise awareness among customers and citizens regarding the criminal modus operandi, and work to periodically distribute awareness bulletins across bank branches, offices, and social media channels, urging customers not to share their personal and banking information with others.
1 www.pma.ps Ramallah and Al-Bireh Governorate - Palestine P.O. Box 452 | Tel: +970 2 2415251 | Fax: +970 2 2415310 | info@pma.ps Gaza - Palestine P.O. Box 4026 | Tel: +970 8 2825713 | Fax: +970 8 2844487
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PALESTINE MONETARY AUTHORITY
PALESTINE MONETARY AUTHORITY
- Provide mechanisms and channels to receive customer reports in the event of fraud, and work to suspend granted electronic services (bank cards, internet and mobile banking) upon the bank's awareness of such incidents, and until customers submit a written request to obtain new cards and PINs.
- Implement specific caps for mobile phone balance recharge transactions via internet and mobile banking, not exceeding (100 NIS daily, 200 NIS weekly, 300 NIS monthly); unless otherwise agreed upon in writing between the customer and the bank.
- Establish automated controls on the bank's internet and mobile banking systems to ensure the following are not permitted:
- Creating a username for a customer on internet and mobile banking if the user's mobile number differs from the customer's mobile number registered in the banking system.
- Changing the customer's registered mobile number on the bank's systems.
- Monitor electronic transactions and transfers executed between customers of West Bank and Gaza branches, particularly those related to mobile balance recharges.
- Provide customers with an SMS notification upon the execution of financial transactions on their bank accounts.
Banks are required to provide us in writing with the measures taken in this regard, via the official email address of the Anti-Money Laundering and Combating the Financing of Terrorism Department: AML-CFT@PMA.PS.
Supervision Department Palestine Monetary Authority